Ferrari's Michael Schumacher retired from the Japanese Grand Prix with an engine failure on Sunday that left his hopes of a record eighth Formula One championship in tatters.

The German, in the penultimate race of his career, was leading when his car's engine let out a plume of smoke 16 laps from the finish.

He pulled over and stepped out of the car while Renault rival Fernando Alonso, the reigning champion who was level on 116 points with Schumacher but 7-6 behind on race wins before the start, won the race.